Intel reported a strong recovery in sales of enterprise-related semiconductor products for the third quarter on higher demand amid bounce back from the impact of Covid-19.
CEO Pat Gelsinger said on an earnings call Thursday that chip demand remains “very strong” across all the segments Intel provides even as “industry supply remained very constrained.”
Enterprise revenues were up 70% and affected Intel’s data center group (DCG) and IoT group (IoTG), which were up 10% and 54% respectively, the company said on Thursday. DCG reached $6.5 billion and IoT G hit $1 billion, an all-time record, out of total revenues of $19.2 billion, an improvement of 5% over a year ago.
Client computing dropped 2% to $9.7 billion due to lower notebook volumes due to industry-wide component shortages. Desktop chips had higher average selling prices and some strength, however.
The PC drop apparently led to an 8% decline in Intel shares after hours on Thursday, reaching $51.
Mobileye, the business that is developing autonomous vehicle technology within Intel, saw 39% growth, reaching $326 million.
Intel also announced CFO George Davis will retire in May and will continue until a successor is appointed.
During the quarter, Intel announced it had broken ground on two new leading-edge chip factories in Chandler, Arizona, three months ahead of schedule. Amazon was also announced as the first customer to use Intel Foundry Services’ packaging services while Intel is talking to 100 customers in all. Intel also announced Qualcomm will use Intel’s future 20A process technology.
Fourth quarter revenues are expected to reach about $19.2 billion.
In a statement, Gelsinger said, “We are still in the early stages of our journey, but I see enormous opportunity ahead.” The company has started delivering on its Integrated Device Manufacturer 2.0 strategy announced in March.
He said Intel is ahead or on schedule with a roadmap for all its chip processes, including 20A.
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